Dallas City Council Budget Workshop for FY 2026-27 and FY 2027-28 – August 11, 2026
Dallas City Council Budget Workshop for FY 2026-27 and FY 2027-28 – August 11, 2026
The Dallas City Council held a budget workshop on August 11, 2026, from 9:30 a.m. to 4:08 p.m. to receive the City Manager's Recommended Biennial Budget for fiscal years 2026-27 and 2027-28. The proposed $5.66 billion balanced general fund budget for FY27 includes a minimal property tax rate decrease and focuses on core services, public safety, and infrastructure. The briefing was presented by City Manager Kimberly Biser Tolbert, CFO Jack Ireland, and Budget Director Jeanette Wheedon, followed by extensive questions and discussion from council members.
Discussion Items
- Budget Overview: The proposed total budget is $5.66 billion for FY27 (a $452 million increase over FY26) and $6.3 billion for FY28. The general fund totals $2 billion, a $80 million (4.1%) increase, driven by an $83.1 million increase for police and fire, requiring net decreases of $2.9 million in other departments.
- Property Tax: A 0.1 cent reduction in the property tax rate to 69.78 cents per $100 valuation is proposed (the 11th consecutive year of reduction). The median homeowner would see a $61.61 savings. The tax base grew 4.97% in certified values, with new construction contributing 1.7%.
- Closing the $50 Million Shortfall: The gap was closed through $25.5 million in revenue maximization (franchise fees, park fees, interest earnings, court collections, traffic enforcement unit, fire rescue fees, closed old funds) and $24.5 million in expense management (position deletions, health plan changes, landline fee increase from $0.62 to $1.30 per month, etc.).
- Public Safety: Police and fire constitute 63.4% of the general fund. The budget includes a 3.19% pay increase for police/fire (starting pay at step one: $83,822), funding for hiring 750 officers over two years (ending FY28 with 3,800 officers), and enhanced overtime accountability. Fire overtime is increasing due to pay raises and mandatory staffing requirements, but hours are declining.
- Proposition U Compliance: The growth in unrestricted revenue ($73.5 million) requires $36.8 million for public safety; the full amount is allocated to the police/fire pension ($246 million), fully satisfying the proposition.
- Other Expense Drivers: Police/fire pension ($20M increase), non-uniform merit (2% effective April 2027, delayed to April), TIFF contributions ($139.9M total, up $4.6M), IT investments ($6M increase), contract increases (custodial, jail, school crossing guards), and elimination of the co-pay health plan to address rising healthcare costs.
- Capital and Debt Service: The capital budget totals $1.3 billion (23% of total budget), primarily funded by the 2024 bond program. Debt service budget is $525.4 million. The city plans to issue $250 million in bonds in November.
- Enterprise Funds: Aviation, convention center, water utilities, sanitation, and other enterprise funds have separate budgets. Sanitation rates will shift to a tiered structure (curbside customers see a 5.8% decrease; alley service a 12.8% increase). Water rates increase by 9.5%.
- Library Services: The budget reduces 70 positions, moves to a flagship library model (five locations open 7 days a week, 59 hours), reduces hours at most branches to 44 hours per week, and partners with Dallas College and Workforce Solutions for adult learning.
- Future Focus Areas: Employee health benefits, pension changes, living wage ordinance review, animal cruelty response, school crossing guard program, school resource officers, first offender program, and the WIC program will be addressed in future workshops.
Key Outcomes
- The council received the recommended budget; no votes were taken (this was a briefing).
- The tax rate ceiling will be set on August 25, 2026, with a public hearing and adoption scheduled for September 16, 2026.
- A budget workshop on employee health benefits and uniform overtime/response times will occur on August 19, 2026.
- Town hall meetings will be held from August 11 to August 25 to gather public input.
- The council discussed the need for a citywide strategic plan to guide future priority-based budgeting efforts.
Meeting Transcript
You're watching the meeting of the Dallas City Council with Mayor Eric L. Johnson, Mayor Pro Tem Jaime Recendez, Deputy Mayor Pro Tim, Maxie Johnson, the Council Members Chad West, Zaren D. Gracie, Jesse Marino, Gay Denell Willis, Laura Kadena, Adam Basildua, Laurie Blair, Paula Blackman, Kathy Stewart, William Roth, Cara Mendelson, Paul E. Ridley, City Manager Kimberly Biser Tolbert, City Secretary Billy Ray Johnson, and Interim City Attorney Bert Vandenberg. All right. We have a quorum. Good morning. Today is Tuesday, August 11th, 2026. The times 9 30 a.m. And I now call this meeting of the Dallas City Council to order. Our invocations is going to be given by our colleague Chairman Zaren Gracie, who represents District Three. I'll turn over to Chairman Gracie now for our invocation, and then we'll have our pledges of allegiance. Thank you, Mr. Mayor. Good morning, everyone. Let us pray. Gracious and eternal God, we come before you this day as stewards of this city, of its people, and the trust placed in our hands. Lord, we ask your blessings on the council on the work before us on every decision that will be made in this chamber today. Your word tells us in Galatians 6 9 let us not become weary in doing good. For at the proper time we will reap a harvest if we do not give up. Lord, we ask that you would that you would apply that promise first to the budget of this city. The work of building a budget is slow, often thankless work, line by line, department by department, priority by priority. It is easy to grow weary in that labor. We ask for your wisdom for every hand that touches these numbers, that what is planted in this budget in our streets, our public safety, our neighborhoods, our children would yield a harvest of a stronger, safer, more prosperous Dallas. Lord, we lift up the staff of this city, the men and women who show up early and stay late, who serve residents they will never be thanked by, who carry the daily weight of making government work. Lord, renew their strength when they are weary. Remind them that their good work, even when unseen, is not in vain. And Lord, we lift up the personal budgets of our residents, the families stretching every dollar, the seniors on fixed incomes, the small business owners taking risks to build something of their own. In a season where the cost of living presses hard on so many, we ask for your provision and your peace. Give them strength not to give up and give this city the wisdom to be a good neighbor to them in return. Father, whether it is the budget of a city or the budget of a household, let none of us grow weary in doing good. Let us trust that the harvest comes in your time, not always our own. We ask this in your holy name. Amen. Honor the Texas flag. I pledge allegiance to thee, Texas, one state under God, one and indivisible. Thank you very much. You may be seated. And seeing that there are no uh announcements or special presentations or open microphone speakers, I believe this morning, Madam Secretary, is that correct? That's correct, Mr. Mayor. Then I will turn it over to our city manager. So um thank you very much, members. Good morning, Mayor and City Council. Today's briefing is on item number A. The City Manager's recommended biennial budget for 2627 and fiscal year 2728. For many years during the budget development process, we could rely on relatively stable patterns, predictable revenue growth, steady service demands, and a workforce model that did not change much from year to year. That era is over. Dallas has entered a period where change is the new normal, and we cannot run away from it. Today's costs are rising faster than revenue, and the pressures on our organization are greater than ever.
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